Trafina Energy Ltd.
TSX VENTURE : TFA.A
TSX VENTURE : TFA.WT.A

Trafina Energy Ltd.

July 26, 2011 08:30 ET

Trafina Energy Ltd. Provides Update on Second McMullen Vertical Evaluation Well, Second Pembina Well and Saskatchewan Acquisition

CALGARY, ALBERTA--(Marketwire - July 26, 2011) -

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Trafina Energy Ltd. ("Trafina" or "the Company") (TSX VENTURE:TFA.A)(TSX VENTURE:TFA.WT.A) is pleased to announce that its second well in the McMullen area of northeastern Alberta has been drilled, cored, tested and cased. Trafina Martin Hills at 5-28-77-25W4 (5-28) was rig-released earlier this week. The rig is expected to be moved to the third location at 11-28-77-25W4 (11-28) this morning, weather permitting.

The 5-28 well encountered 10 metres of Wabasca A sand. Additionally, the two variables necessary for commercial production, pressure and viscosity, have been quantified. A pressure test performed on the well indicates a bottom-hole pressure between 1,850 and 1,910 kilopascals (kpa) and oil recovered from the core has a viscosity of 22,000 to 26,000 centipoises. As disclosed on July 11, 2011, pressure needs to exceed 1,200 kpa and viscosity needs to be less than 50,000 centipoises. Completion operations are underway and first production could occur in early August 2011.

Although the Wabasca zone could be construed to be a blanket sand, it is not a homogenous reservoir. Industry experience has shown that each well drilled may exhibit markedly different characteristics of pay thickness, porosity, water saturation, pressure and viscosity. Therefore, Trafina intends to announce the results of each vertical evaluation well drilled.

The results achieved with the 5-28 bode well for the success of Trafina's business plan for this rapidly developing core area. The initial well drilled in the McMullen area at 16-28 in early July encountered 8.5 metres of Wabasca A sand and will be completed in due course. If the third well at 11-28 provides the same characteristics as 16-28 and 5-28, it is likely that pod development in at least two quarter sections of section 28 will occur later in 2011.

West Pembina, Alberta

At West Pembina, Trafina's second non-operated Cardium horizontal well has reached total depth, albeit late and over budget as a result of drilling problems. It is anticipated that the well will be completed with a multi-stage fracturing operation as soon as time and ancillary services are available. Trafina has a 25 percent working interest in this well. Two additional Cardium wells are planned for the fourth quarter of 2011 and the first quarter of 2012.

Rangeview/Divide, Saskatchewan

Trafina recently increased its working interest in the Rangeview/Divide area of southwest Saskatchewan from 80 to 90 percent. The 10 percent increase is a result of the settlement of debt owed to Trafina by a working interest partner in the Rangeview/Divide properties.

About Trafina

Trafina Energy is a junior oil and gas company based in Calgary, Alberta. The Company's main areas of interest are the McMullen and Pembina areas of Alberta and the Rangeview and Divide areas of southwest Saskatchewan, with other production in Wetaskiwin, Alberta. Trafina's shares and warrants trade on the TSX Venture Exchange under the symbols TFA.A and TFA.WT.A respectively.

Forward Looking Statements: This news release contains forward looking statements and forward looking information based on management's current expectations regarding the potential for commercial production from the wells to be drilled in the McMullen area of Alberta considering the characteristics of the reservoir based on preliminary pressure and viscosity information obtained from the initial testing of Trafina's 16-28 well; timing for completion of Trafina's vertical evaluation well at 5-28, drilling of Trafina's vertical evaluation well at 11-28 and completion of the 16-28 well; the ability of the Company to successfully delineate the McMullen reservoir, and the timing thereof; timing for first production from the McMullen area, timing of completion of Trafina's second Cardium horizontal well at West Pembina and the timing for drilling a second well at Rangeview/Divide. Operational forward looking information is based on management's expectations regarding future growth, results of operations, production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. Readers are cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Forward looking statements involves significant known and unknown risks and uncertainties. Reference is made to Trafina's revised annual information form for the year ended December 31, 2010 dated April 8, 2011 and management's discussion and analysis for a description of some of the risks that could affect the Company's future results and could cause results to differ materially from those expressed in the Company's forward looking statements. The forward looking statements contained in this news release are made as at the date hereof and, except as required by applicable securities laws, Trafina does not undertake any obligation to update publicly or otherwise any such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Trafina Energy Ltd.
    Kelly J. Ogle
    President and Chief Executive Officer
    (403) 263-0800
    (403) 263-0811 (FAX)
    info@trafinaenergy.com

    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)